"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Monday, March 12, 2012

Eurozone outlook: Recession and Default Contagion

Default Contagion Possible in Europe
NASDAQ
Friday seen one of the worst moments of the 2008 financial crisis played out, part of the European Union defaulted on their debt and with the help of the ECB, World Bank and IMF strong armed bond holders in to accepting massive write offs.

There Will Be Contagion
Business Insider
There are much broader implications for the eurozone should Greece have to restructure its debt. People fail to see the costs to both Greece and the eurozone of a restructuring: the cost to its citizens, the cost to its access to markets.

Coming Week Market Movers: Contagion Warnings, FOMC, Top Trends, Calendar Risks
Seeking Alpha
Contagion had arrived, not only at too-big-to bail Italy, but also at the doorstep of the core funding nations. EU bank shares plunged, leading to a ban on their short sales. We'll soon find out if we're about to get a repeat of July 2011.

Prior Week Market Movers, Ramifications & Lessons: Rising Contagion Risk, USD ...
Seeking Alpha
Greek Debt Swap & Default: The Real Problem Is Contagion For most of the week this was the big market mover. We'll skip the details that have been well covered elsewhere and focus on the big point that most writers appear to be missing and its ...

Greece is 'likely to need third bail-out' - Telegraph: "A third bail-out for Greece cannot be ruled out, a senior European Central Bank (ECB) official said, as the country's troika of lenders prepared to rubber-stamp its €130bn (£109bn) second financial rescue." 
Forget 'economic spring' - Greek outlook is stormy - Telegraph: "While last week's debt swap was obviously important, there is still a very real danger of Greece needing yet another bail-out quite soon and eventually leaving the euro."

Euro zone bound for 'mild recession'
Globe and Mail
Benoit Coeure, an ECB executive board member, told Japan's Nikkei newspaper that growth was held back by scarce bank credit and necessary government budget-cutting because of problems with debt in some euro zone countries. He added that higher oil...

Globe and Mail

Eurozone ministers to meet on Monday on Greece
AFP
BRUSSELS — Eurozone finance ministers meet on Monday in Brussels to give their final approval to the second Greek bailout and discuss tightening measures to prevent a repetition of the crisis. The ministers are expected to sign off on the 130 billion ...

AFP

Eurozone finance ministers to meet
BigPond News
Eurozone finance ministers meet today in Brussels to give their final approval to the second Greek bailout. Eurozone finance ministers meet on Monday in Brussels to give their final approval to the second Greek bailout and discuss tightening measures ...

BigPond News

Euro Zone To See A “Mild Recession”
Active Investor
According to a top European Central Bank official, the euro zone is likely to see a “very mild recession” this year. The official also noted that higher oil prices should not have a long term impact on inflation. Benoit Coeure, an executive board ...

Hundreds of thousands protest austerity measures in Spain
USA TODAY
Rajoy's labor market overhaul is aimed at revitalizing an ailing economy suffering theEurozone's highest unemployment rate of near 23%. Rajoy has acknowledged the jobless rate is likely to rise beyond 24% this year despite the measures, a point taken...

USA TODAY

ECB's Benoit Coeure sees mild recession, inflation receding
Economic Times
FRANKFURT: The euro zone will go through a "very mild recession" this year and will rebound to modest growth next, European Central Bank Executive Board member Benoit Coeure was quoted as saying on Sunday. He also said, in an interview with Japanese ...

Predicting the next credit crunch
Business Spectator
But after watching how governments around the world moved to bail out their banks during thefinancial crisis, the hedge fund was quick to work out that government debt – particularly Europe, but also in Japan and the United States – was climbing to ...

Greek bail-out to get sign-off from eurozone ministers
Telegraph.co.uk
Eurozone finance ministers are expected to rubber-stamp Greece's bail-out on Monday, despite concerns the country could need another rescue package. Part of Greece's aid package was immediately unblocked after the country pushed through a sovereign ...

Telegraph.co.uk

The Global Financial Crisis is a Global Human Rights Crisis
Center for Research on Globalization
A few weeks back, The International Institute for Peace, Justice & Human Rights, a human rights NGO in Geneva that lobbies the UN, invited me to present my views on the relationship between the global financial crisis and human rights.

Center for Research on Globalization

ECB calls for tougher rules on budgets
Financial Times
By Ralph Atkins in Frankfurt The European Central Bank has sharpened its hardline stance oneurozone fiscal policy by urging the still-tougher policing of member states' public finances, including by “naming and shaming” the worst offenders.

February figures show largest trade deficit in 12 years
FRANCE 24
Chinese firms' efforts to sell to the country's major trading partners in the West are suffering from the effects of the eurozone debt crisis and weak economic recovery in the United States. The deficit was the largest for at least 12 years, ...

FRANCE 24

Threat of Greek default fades but bailout may not be last
Sydney Morning Herald
The dark clouds hanging over the euro zone have receded along with the threat of a Greek default, but the latest bailout for Athens may not be the last. After nine long months of negotiations, a large majority of Greece's private creditors agreed to a ...

Threat to Greek default fades but bailout may not be last
The Bostwana Gazette
BRUSSELS, Belgium (AFP) - The dark clouds hanging over the eurozone have receded along with the threat of a Greek default, but the latest bailout for Athens may not be the last. After nine long months of negotiations, a large majority of Greece's ...

Global economy improves with beginning of ''12 - NBK report
Kuwait News Agency
On Eurozone countries, the report added that Greek Finance Minister Evangelos Venizelos announced a total participation rate in the private sector involvement of about EUR 172 billion, or 83.7 percent. According to the official announcement, ...

CM demands Centre's support to tide over financial crisis
Times of India
Besides, she also sent a strong note to the Centre, demanding her ally's support to tide over thefinancial crisis in the state. On Monday, Lok Sabha Speaker Meera Kumar had convened a meeting of party leaders to discuss Parliament's agenda during its ...

Pro-European left sweeps Slovak vote, targets rich
Reuters
Fico's centre-left Smer party won a majority in parliament and the prime minister in waiting said he would uphold the outgoing government's commitment to cut the central European country's budget gap and support steps to strengthen the euro zone.

Greece will be the focus of Monday's Eurogroup meeting
BBC News
Finance ministers from eurozone nations meet on Monday to discuss giving Greece's second bailout final approval. The Eurogroup, which includes eurozone finance ministers, the president of the European Central Bank and European Commission chiefs, ...

BBC News

Euro banks 'pulled plug on loans'
Brisbane Times
During the euro zone crisis, European banks pulled back loans on a global scale. Photo: Bloomberg EUROPE'S troubled banks accelerated efforts to pull loans from countries around the world, including Australia, towards the end of last year as the ...

Brisbane Times

AUD/USD Fundamental Analysis March 12, 2012, Forecast
FX Empire
Bondholders representing some 85% of Greece's outstanding private-sector debt, well above the government's minimum threshold, have agreed to the swap, easing pressures on the eurozone. The dollar gained against most major rivals on Friday, with details ...

FX Empire

Brav Merkel on campaigning for Sarko
Financial Times
I consider the arrival of partisan party politics in Franco-German relations as one of the more welcome developments in the eurozone for a long time. In the past the quality of bilateral relations was largely determined by the chemistry between leaders ...

Schaeuble:Triple-A States Have Better Shot At Eurogroup Post-Report
Wall Street Journal
ATHENS (Dow Jones)--Euro-zone countries that have a triple-A credit rating are likely to have a better chance at seeing their candidate succeed Jean-Claude Juncker, president of the region's finance ministers, according to German Finance Minister ...

Estonia growth tops EU with 7.6%
Independent Online
The Baltic nation of 1.3 million is also expected to top the EU's growth charts this year with a 1.2-percent expansion as the eurozone's debt crisis takes its toll, according to a European Commission forecast in February. As the country's main trade ...

Independent Online

FICCI: Budget must initiate reforms to propel growth
IBNLive.com
The lingering Eurozone sovereign debt crisis continues to nag major economies of the world as they struggle to claw their way out of the recession and high unemployment levels. The crisis has spawned volatility in capital flows and a slowdown in ...

IBNLive.com

Banks pull $7.5 billion from Australia
Brisbane Times
EUROPE'S troubled banks accelerated efforts to pull loans from countries around the world, including Australia, towards the end of last year as the euro zone debt crisis intensified. Figures released by the Bank for International Settlements in ...

Finance ministers to revive firewall debate
Financial Times
By Joshua Chaffin in Brussels After helping to push through a Greek debt restructuring that is the largest in history, eurozone governments will revive a debate about boosting firewalls to shield Spain, Portugal and other vulnerable economies from the ...

Slovak leftist Fico sweeps to election victory
Chicago Tribune
BRATISLAVA (Reuters) - Slovakia's leftist leader Robert Fico on Sunday assured Brussels he was a partner to rely on after a landslide election victory that will oust a government that collapsed over whether to back euro zone bailouts.

Don't tar all banks with one brush
Hindu Business Line
Banking practices that triggered the 2008 financial crisis are more a feature of advanced economies than Moody's or the IMF would have us believe. Banks in emerging markets (EM) are normally placed in the high-risk category, while developed country ...

Prison Planet.com » Evolving Global Financial Crisis. Selling ...
By admin
Bob Chapman International Forecaster March 11, 2012. The government is preparing to package and sell foreclosed homes. We do not know what discount to the current market there will be but you can guess it will be 20% or more.
Prison Planet.com

There Will Be Euro-zone Debt Crisis Contagion, The Next Greek ...
(September 16, 2010) – "Restructuring is not going to happen. There are much broader implications for the eurozone should Greece have to restructure its debt. People fail to see the costs to both Greece and the eurozone of a restructuring: ...
The Market Oracle

Insights Into Simple Solutions Of Global Financial Crisis at ...
By peterpervis
Insights Into Simple Solutions Of Global Financial Crisis · without comments. Counter to prevalent belief and just what the majority of mass media is serving the world's populace, the worldwide (financial) economic crisis did not appear as a ...
waltermairena.com

Portugal to Fall, Greece to Leave Euro Zone: Roubini @ Forex Factory
By From cnbc.com
Portugal to Fall, Greece to Leave Euro Zone: Roubini - Portugal is likely to be the next to restructure its debt and exit the euro zone, economist Nouriel Roubini predicted on CNBC Friday. There are several euro-zone countries in...
Forex Factory

Convenient Global Financial Crisis Methods – An Intro | FKKT Revised
By Daniel
Counter to common thinking and also what nearly all of mass media is providing for our planet's citizenry, the worldwide (financial) economic crisis didn't come as being a sudden sensation, which besets many, if not just about all, the countries ...
FKKT Revised

Top ECB official sees 'mild recession' in eurozone – forex.ch
By Forex.ch
Top ECB official sees 'mild recession' in eurozone. March 11, 2012 by Forex.ch Leave a Comment. A top European Central Bank official says the 17 countries that use the euro will probably see a “very mild recession” this year and that higher ...
forex.ch

Debt Crisis: Greece is likely to need third bailout | Financial Crisis
By Kevin
A third bail-out for Greece cannot be ruled out, a senior European Central Bank (ECB) official said, as the country's troika of lenders prepared to rubber-stamp.
Formula 1 | Technology | Music | Finance

Top ECB official sees 'mild recession' in eurozone - Seattle ...
Top ECB official sees 'mild recession' in eurozone. From: The Seattle Times: Business & Technology - 1:38pm - March 11, 2012. A top European Central Bank official says the 17 countries that use the euro will probably see a "very mild ...
eWallstreeter

MoreLiver's Daily: 11th Mar - Weekender
By MoreLiver
The Dutch Freedom Party has called for a return to the Guilder, becoming the first political movement in the eurozone with a large popular base to opt for withdrawal from the single currency. EURO CRISIS: PIIGS. Sustainability of Italy's ...
MoreLiver's Daily

Eurozone crisis live: Greece confident as debt swap deal closes ...
Greek ministers hope that bond restructuring will go ahead as planned. Results due 6am Friday.
www.guardian.co.uk/.../mar/.../greece-debt-swap-eurozone-cri...

Evolving Global Financial Crisis. Selling “Foreclosed Homes” Alex ...
Bob Chapman International Forecaster March 11, 2012. The government is preparing to package and sell foreclosed homes. We do not know what discount to ...
www.infowars.com/evolving-global-financial-crisis-selling-for...

Euro Zone Crisis Won't Be a Big Deal Soon: Analyst - EU Business ...
The euro zone debt crisis will not be a big deal for the markets within the next few months, Larry Kantor, managing director and head of research at Barclays ...
www.cnbc.com/.../Euro_Zone_Crisis_Not_a_Big_Deal_for_L...

EUROZONE CONSUMER ENTERS DOUBLE DIP TERRITORY ...
The tightening credit conditions in the Eurozone are taking their toll on the consumer. The unemployment rate is rising and is likely to keep rising further, given ...
pragcap.com/eurozone-consumer-enters-double-dip-territory

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